Peak XV Partners Leads $48mln Round in Dubai-Based Spend Management Startup Alaan

Peak XV Partners led a $48 million funding round in Dubai-based spend management startup Alaan. The startup offers spend management services to prominent corporations in the West Asia market. The round saw participation from Y Combinator, 468 Capital, Pioneer Fund, and other prominent Gulf region startup founders. Alaan has processed over 2.5 million transactions and works with over 1,500 finance teams at leading companies. The startup uses AI to simplify expense management and reconciliation processes.

Dubai-based spend management startup Alaan has secured $48 million in Series A funding, led by Peak XV Partners. The investment round also saw participation from Y Combinator, 468 Capital, Pioneer Fund, and other prominent Gulf region startup founders. The funding underscores growing investor confidence in AI-driven financial tools tailored to emerging markets.

Alaan's platform integrates multi-currency corporate cards with AI-powered analytics, automating expense reconciliation and providing real-time insights. This has attracted over 500 enterprise clients, including major names like Siemens and Henkel, processing billions in transactions annually. The company's origins trace back to McKinsey consultants Parthi Duraisamy and Karun Kurien, who identified inefficiencies in corporate payments while working at McKinsey’s Dubai office.

The funding round values Alaan at a post-money valuation exceeding $200 million, reflecting its traction amid a challenging global funding environment. The latest capital will fuel expansion across the MENA region, enhancing AI features for fraud detection and predictive budgeting. Alaan plans to double its team and enter new markets, including Egypt and Jordan, while deepening AI capabilities for personalized financial insights.

This infusion builds on prior raises, including a $4.5 million pre-Series A in 2023 backed by Y Combinacy and Presight Capital. The company's proprietary AI monitors spending patterns, flags anomalies, and integrates with enterprise software like SAP, reducing administrative burdens and ensuring compliance with local regulations.

Alaan has processed over 2.5 million transactions and works with over 1,500 finance teams at leading companies. The company's McKinsey-honed strategy positions it well to navigate regulatory hurdles in fragmented MENA markets.

This funding round signals a maturing MENA tech scene, where AI isn't just a buzzword but a tool for tangible efficiency gains. As Alaan scales, it may set benchmarks for how fintech bridges legacy systems with cutting-edge innovation, drawing more global capital to the region.

References:
[1] https://www.webpronews.com/dubai-fintech-alaan-raises-48m-series-a-led-by-peak-xv/
[2] https://www.techcrunch.com/2025/07/02/alaan-secures-48m-series-a-funding/